Ukraine launched drone strikes on the outskirts of St. Petersburg, hitting an oil terminal and naval base in Kronstadt, hours before Russia's economic forum. Moscow vowed a "systemic" response, while Kyiv stated its long-range sanctions plan is being implemented.
Ukrainian drones targeted energy and military sites in St Petersburg, Russia, including an oil terminal and naval base, hours before the city's economic forum. The strikes, described by Ukraine as "long-range sanctions," occurred despite Russian air defense efforts and caused significant disruption, including the temporary closure of the city's airport.
Ukraine launched a drone attack on an oil storage facility in Novorossiysk, Russia, causing fires in administrative buildings and injuring two people. The attack targeted the Grushovaya oil terminal, a key asset for Russia's war economy.
Indonesia proposed an Asean oil storage hub to bolster regional fuel reserves amid supply disruptions from the Middle East. Analysts cite political distrust and Asean's history of untested mechanisms as potential obstacles.
South Korea is drawing growing interest from Middle Eastern oil producers seeking to store crude oil at the country’s petroleum reserve bases, the world’s sixth largest, amid a prolonged blockade of the Strait of Hormuz, a South Korean official and an expert on the matter have said. The strait’s closure in the wake of the US-Israel war on Iran has taken a toll not only on South Korea and other nations dependent on oil imports but also oil-producing countries whose storage tanks are filling up...
Oil prices surged Tuesday as Iranian-linked attacks and military clashes heightened fears of disruption in the Strait of Hormuz. Brent crude rose 6% to $114.44 a barrel, while WTI settled 4% higher at $106.42. The Fujairah Oil Industry Zone was struck by a drone, with Emirati officials blaming Iran.
Iran faces a critical oil storage crisis with only 12-22 days of unused capacity remaining, potentially forcing production cuts of up to 1.5 million barrels per day by mid-May. Oil exports have plummeted from 1.85 million barrels per day in March to just 567,000 barrels per day following the US naval blockade of Iranian ports in early April. While revenue impact will take 3-4 months to materialize, the storage bottleneck could force Tehran to halt production well before financial effects hit.
The US-Iran conflict has shifted from land to sea as both sides vie for control of the Strait of Hormuz. While Trump shelved plans to bomb Iranian infrastructure, the US is attempting to collapse Iran's economy through naval blockades and sanctions, targeting oil storage capacity. Iran claims it has time on its side and reports 34 tankers have circumvented the blockade, generating an estimated $910m in revenue. Oil prices remain above $100/barrel as the economic warfare intensifies.
